Adnoc awards $871mn contract for gas project

ABU DHABI / WAM

Adnoc LNG, a subsidiary of the Abu Dhabi National Oil Company (Adnoc), on Wednesday signed the Engineering, Procurement and Construction (EPC) contract for the second phase of the Integrated Gas Development Expansion (IGD-E) project with a consortium of Spain’s Tecnicas Reunidas and Abu Dhabi’s Target Engineering Construction Company. The contract is valued at AED3.16 billion ($860 million) of which around half will flow into the local economy through Adnoc LNG’s focus on maximising in-country value.
The agreement, between Adnoc LNG LNG and the Technicas Reunida and Target Engineering Construction Company joint venture, was signed by Fatema Mohamed Al Nuaimi, Acting CEO of Adnoc LNG; Arthur Crossley Sanz, General Manager of Tecnicas Reunidas; and Chaouci Yassine, CEO of Target Engineering Construction Company.
The second phase of the IGD-E project will take 54 months to complete. It will add 245 million cubic feet per day of associated gas to the 1.4 billion cubic feet per day of offshore gas sent from Das Island to Adnoc LNG Gas Processing’s Habshan gas facilities to be processed for use in power generation.
Work on Adnoc LNG’s AED40 billion ($11 billion) Integrated Gas Development programme began in 2009, to enable the transfer of one billion cubic feet a day of high-pressure gas from the offshore Umm Shaif field, via Das Island, to Adnoc LNG Gas Processing’s onshore facilities at Habshan and Ruwais. The programme was completed in 2013.
Subsequently, Phase 1 of the IGD-E project was launched in 2015 and was completed last month, boosting Adnoc LNG’s offshore gas processing capacity by 400 million cubic feet per day to 1.4 billion cubic feet per day.

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